Trouble we are facing

[Guest guest]

Is happening now in Iran. Iran has been following much the same line the US has been recently, pumping more money into the system. Here is an excerpt from an article along with the link.

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Iran's Central Bank, which controls the nation's banking system, has had three governors (the guy in charge) removed in the last three years. Each of the former governors was a professional banker who rebelled at government orders to make bad loans and subsidize make-work (economically inefficient enterprises) to try and reduce the unemployment rate (officially about 10 percent, really more than twice that). That has sent inflation to nearly 30 percent and starved legitimate firms for credit. The professional bankers see this as economic suicide, even though there is some political wisdom in trying to reduce the unemployment rate in the short term. What the bankers are smart enough to not bring up is that the majority of Iranians oppose the clerical dictatorship they have been living under for nearly three decades, but are not yet ready to go into open rebellion against.

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The Democrats have promises a new stimulus package that includes some of this, make work projects to lower the unemployment rate. The US also tried this in the Great Depression and it was largely a failure.

Like the Iranians now, we are pumping out more and more cash and it is going to cause a rise in inflation. That probably won't really kick in until summer or next fall, but it will eventually.

It is interesting that their bankers know what this is going to do to the economy, just like our bankers wanted nothing to do with the bailout bill but were forced to go along. Its only a shame that the treasury and federal reserve people are either so incompetent or they have some kind of agenda they won't speak of, and are screwing things up.

http://www.strategypage.com/qnd/iran/articles/20081025.aspxPlay online games for FREE at Games.com! All of your favorites, no registration required and great graphics – check it out!